Debt Snowball & Avalanche Calculator

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Snowball vs Avalanche: Which Should You Use?

Both methods use the same idea: pay the minimum on every debt, then throw every extra dollar at one target debt until it's gone, then roll that freed-up payment into the next one. The only difference is which debt you target first.

The avalanche method is mathematically optimal: by killing the highest-rate debt first, you stop the most expensive interest as early as possible. The snowball method usually costs a little more in total interest, but clearing a whole debt quickly gives a motivation boost that helps many people actually finish. For most Canadians carrying credit-card debt at 20%+ APR, the two methods often pick the same first target anyway.

How to Use This Calculator

1. Add each debt with its balance, interest rate (APR), and minimum monthly payment.
2. Enter any extra monthly payment you can add on top of the minimums.
3. Click Compare to see your debt-free date and total interest under each method.
4. Use the payoff order to know exactly which debt to attack first.

Frequently Asked Questions

Avalanche vs snowball — what actually separates them

Both methods work identically at the start: pay the minimum on every debt so nothing goes to collections, then throw every spare dollar at one target. The only difference is which target you pick.

Avalanche attacks the highest interest rate first. It is always mathematically cheaper, because you are killing the debt that grows fastest. Snowball attacks the smallest balance first. It costs more in interest but clears an entire account sooner, and that first "paid off" moment is what keeps many people going.

The right way to choose is to run both and look at the size of the gap. If avalanche saves you $200, take the psychological win and use snowball — a plan you abandon in month four saves nothing at all. If it saves $4,000, take the money. The calculator above shows both totals precisely so the decision is informed rather than ideological.

Typical Canadian rates, worst first

Under avalanche you work down this list. Use your own statements — these are typical ranges, not your actual rates.

Canada eliminated interest on the federal portion of student loans in 2023, which usually moves student debt to the bottom of an avalanche list. Provincial portions may still carry interest depending on your province.

The step most people skip before starting

Phone every card issuer and ask for a lower rate. It costs nothing, takes about five minutes each, and most Canadian issuers have a low-rate product around 12.99% that they will move a long-standing customer to on request. Dropping from 19.99% to 12.99% cuts your interest by roughly a third without changing your payment by a dollar — a bigger effect than most people achieve through months of extra effort.

Do this before you build the plan, then enter the new rates above. Reordering an avalanche around rates you have already negotiated down is more effective than optimising around rates you simply accepted.

When neither method is enough

Run one honest check: total unsecured debt divided by monthly take-home pay. Under about 6× and either method will clear it in a few years. Between 6× and 12×, the rate is likely the real problem and consolidation or a balance transfer may do more than willpower. Above roughly 20×, a repayment plan at 20% interest may never actually finish.

If you are in that territory, a consultation with a Licensed Insolvency Trustee is free and carries no obligation to file. Our guide to getting out of debt in Canada covers the full ladder — credit counselling, consumer proposals and bankruptcy — with the current figures for each.

Debt Payoff — Frequently Asked Questions